The Singapore Press Holdings (SPH) will pay up to S$60 million (US$48.5 million) in cash for online car portal, sgCarMart (SGCM), the media group announced yesterday.
The company said it will buy all of SGCM's issued shares along with its subsidiary, Quotz. The latter is an online auction platform.
The group said that the price of $60 million was arrived at "following arm's length negotiations on a willing-buyer, willing-seller basis and taking into account, inter alia, various factors such as the existing assets, intellectual property rights, goodwill, financial position and business prospects of SGCM".
The portal was founded by Vincent Tan, Tan Jinglun and Seah Hon Hui, in 2004. They are all 32 years old. They founded the company when they were studying engineering at NUS.
According to a report in The Straits Times, which is owned by SPH, the site attracts 2.5 million visitors and clocks up 30 million page views each month. The company posted a net profit of S$2.3 million on a revenue of S$5.5 million in FY 2011.
The three young men who founded SGCM will now become employees of this wholly-owned subsidiary of SPH after the deal.
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